Board characteristics and firm performance in Spain

2014 ◽  
Vol 14 (4) ◽  
pp. 485-503 ◽  
Author(s):  
Mercedes Rodriguez-Fernandez ◽  
Sonia Fernandez-Alonso ◽  
José Rodriguez-Rodriguez
Keyword(s):  
Financial Performance ◽  
Theoretical Approach ◽  
Boards Of Directors ◽  
Negative Relationship ◽  
Governance Structure ◽  
Fine Tuning ◽  
Future Research ◽  
Board Structure ◽  
Content Type ◽  
The Relationship

Purpose – This paper aims to investigate the relationship between internal governance structure and financial performance of listed Spanish companies. The effectiveness of the board of directors is analyzed through the use of different variables: size, composition, duality, number of annual meetings and busyness of the directors. The financial performance is measured by return on assets (ROA), return on equity (ROE) and Tobin’s Q. Design/methodology/approach – Our study is addressed through the use of a multi-theoretical approach followed by an empirical analysis. Schematic literature review serves as a basis for setting our hypotheses. We conduct the empirical part of the study by applying these to the listed companies in the Madrid Stock Exchange. An econometric model (multiple regression) is used to test the relation between board structure and financial performance. Findings – Empirical: We conclude that in the three estimated models, two of the dependent variables, ROE and ROA, have an explanatory value. The relationship between the number of the boards of directors’ meetings and performance has proved to be negative. Theoretical: Ample literature on corporate governance leads to two conclusions: First, corporative–financial relations must be studied by a multi-theoretical approach. Second, future research must be made only on specific studies coincident with the majority of their characteristics (country, type of firm, type of statistical model […]). Research limitations/implications – Future research will try to cover gaps, expanding this study in both space and time. Practical implications – The number of Spanish companies’ boards meetings is very high. As shown in our study, holding more than one meeting a month does not guarantee greater financial returns; the board can effectively establish its strategic lines of business by meeting up to 12 times per year. Social implications – The results show a negative relationship between ROE and the number of meetings, which may be linked to the country’s business culture, which traditionally has a higher number of annual meetings when compared to neighboring countries. Perhaps, this is an indicative symptom of the inefficiency associated with the Spanish system. Originality/value – Theoretical review is performed with two aims: first, to establish our research hypotheses, and second, to reflect on future research by fine-tuning the abundant previous studies.

scholarly journals Impacts of dynamic managerial capability and international opportunity identification on firm performance

2019 ◽  
Vol 27 (4) ◽  
pp. 339-363 ◽  
Author(s):  
Md Imtiaz Mostafiz ◽  
Murali Sambasivan ◽  
See Kwong Goh
Keyword(s):  
Financial Performance ◽  
Structural Equation ◽  
Negative Relationship ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Opportunity Identification ◽  
Developed Country ◽  
Content Type ◽  
The Relationship ◽  
Export Manufacturing

Purpose This paper aims to investigate the antecedents and outcomes of international opportunity identification (IOI) in export-manufacturing firms. The fundamental question addressed in this research is: How does dynamic managerial capability (DMC) of entrepreneurs contribute to IOI and success of the firms? Design/methodology/approach The research model was tested through structural equation modeling among the readymade garment manufacturing firms in the least developed country, Bangladesh. A survey was conducted with a random sampling approach and responses were collected from 390 firms. Findings The salient findings are: DMC has direct and indirect impacts through IOI on financial and non-financial performance; IOI mediates the relationship between managerial social capital and non-financial performance and between managerial cognition and non-financial performance; IOI has a negative relationship with the financial performance of the firms; and scope of accelerated internationalization positively moderates the relationship between IOI and financial performance of firms. Originality/value This paper notably shows that DMC of export-manufacturing entrepreneurs leads to the identification of the right kind of opportunities, which, in turn, generate better performance. It is advantageous for this type of firm to operate a business in multiple countries.

Intelligence and job satisfaction in the USA and China

2014 ◽  
Vol 9 (3) ◽  
pp. 232-244 ◽  
Author(s):  
Cassandra Thompson ◽  
Samuel Lane
Keyword(s):  
Job Satisfaction ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Future Research ◽  
Turnover Rates ◽  
Content Type ◽  
The Usa ◽  
Different Cultures ◽  
The Relationship ◽  
Practical Implications

Purpose – This study aims to evaluate both intelligence and job satisfaction of workers in the USA and China. Each topic will be studied individually, first, to determine the relationship between intelligence and job satisfaction. The statistics between China and the USA will then be compared and contrasted to assess how different cultures will affect emotional intelligence and job satisfaction of those in the workforce. Design/methodology/approach – A review of the empirical studies on intelligence and job satisfaction was performed and used to develop a model to guide future research. Findings – There is a negative relationship between intelligence and job satisfaction in the USA, but no studies have been done to compare both constructs cross-culturally. Research limitations/implications – The proposed study can be used to gain an understanding of the relationship between intelligence and job satisfaction across different cultures. Practical implications – The link between job satisfaction and intelligence can be used by employers to determine information about other aspects of their business, such as turnover rates of productive employees. Originality/value – Although there has been some research on the relation between intelligence and job satisfaction, notably by Ganzach (1998), very little has been done across cultures.

Servitization strategy, manufacturing organizations and firm performance: a theoretical framework

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Changli Feng ◽  
Lin Jiang ◽  
Ruize Ma ◽  
Chao Bai
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Theoretical Framework ◽  
Future Research ◽  
Company Performance ◽  
Manufacturing Firm ◽  
Content Type ◽  
Manufacturing Organizations ◽  
Manufacturing Company ◽  
The Relationship

Purpose The purpose of this paper is to analyze the available literature on the relationship between servitization strategy and firm performance, which identifies the main streams and theoretical foundations of research and provides guidelines for future research in this area. Design/methodology/approach The paper discusses the relationship between servitization strategy and manufacturing firm performance by gathering and analyzing existing research published between 1988 and 2019 through bibliometric analysis and content analysis, and then unpacking the processes and impacts servitization has on firm performance. Findings This paper analyzes the evolution of the concept and servitization strategy of manufacturing organizations, and the relationship between servitization strategy and manufacturing company performance. Then, the authors establish an integrated theoretical framework aimed at conveying the factors and providing a practical reference. Practical implications The paper establishes an integrated theoretical framework on servitization and firm performance. The results of the systematic analysis of the literature can be used to inform managers about implementing servitization. Managers need to measure the benefits of servitization from two aspects: financial performance and non-financial performance. And managers need to consider some internal and external influencing factors to achieve a strategic–environmental–organizational fit that will bring better benefits to the firm. Originality/value The paper contributes to the existing research in three different ways. First, the study perfects the gap of research on the range of all of the factors within the relationship between servitization strategy and manufacturing company performance. Second, the study demonstrates a clear indication of how existing studies’ differences influence the research outcomes. Third, this paper proposes research problems and future research directions.

Family ownership and R&D investment: the moderating role of banks and private equity

2019 ◽  
Vol 57 (7) ◽  
pp. 1675-1694 ◽  
Author(s):  
Alessandro Cirillo ◽  
Mario Ossorio ◽  
Luca Pennacchio
Keyword(s):  
Family Involvement ◽  
Private Equity ◽  
Family Firms ◽  
Negative Relationship ◽  
Future Research ◽  
Family Ownership ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
D Investment

Purpose The purpose of this paper is to contribute to innovation and family business literature by establishing whether institutional involvement of private equity (PE) and banks in family firms moderates the relationship between family ownership and research and development (R&D) investment. Design/methodology/approach This paper used the socio-emotional wealth lens to carry out an econometric analysis on a large sample of Italian non-listed family firms. Using the sample selection model meant it was possible to account for potential selection bias arising from firms’ discretionary disclosure of R&D expenditure. Findings Family involvement in ownership reduced firms’ R&D intensity. When PE investors also held shares, the negative relationship was diverted. Bank involvement, however, did not have a significant effect on the relationship. Research limitations/implications This paper enriches the innovation management literature by increasing the understanding of the determinants of R&D investments in family firms. The results support the view that non-financial priorities in family firms are contingent upon non-family shareholders. This enriches the debate about the heterogeneity of family businesses and is consistent with the socio-emotional wealth framework, which has shown that risk preferences may vary if desired and actual performances are different. This may be a fruitful area for future research. Originality/value Contradicting the assumption that institutional owners all share the same perspective, this study is the first to assess the impact of different institutional shareholders on R&D intensity of private family firms.

Childcare demands and employee performance

2016 ◽  
Vol 22 (1/2) ◽  
pp. 36-50
Author(s):  
John Ofori Damoah ◽  
Alex Ntsiful
Keyword(s):  
Working Mothers ◽  
Longitudinal Research ◽  
Employee Performance ◽  
Linear Regression Analysis ◽  
Negative Relationship ◽  
Performance Outcomes ◽  
Sub Saharan Africa ◽  
Future Research ◽  
Content Type ◽  
The Relationship

Purpose – This study aims to investigate the effect of childcare demands on the work performance of mothers. It examines the moderating influence of team support on the relationship between childcare demands and employee performance. Design/methodology/approach – Data were collected from 217 working mothers in various companies in Ghana. Hierarchical linear regression analysis was used to estimate the research model. Findings – The results indicate that childcare demands negatively relate to performance of working mothers at workplace. Further, team support moderates the negative relationship between childcare demands and employee performance such that the relationship is positive and significant. Research limitations/implications – The study adopted a cross-sectional data collection method that prevented casual inferences among the variables. Longitudinal research design will be more beneficial in future research endeavours. Further research should test the influence of personality characteristics of individuals in the moderating influence of team support on the relationship between childcare demands and employee performance. Practical implications – The study suggests that when team support is well taken care of in organisations, managers can turn the negative effect of childcare demands on employee performance into improved performance outcomes. Originality/value – To the best of the authors’ knowledge, this study is the first in Sub-Saharan Africa to examine the moderating influence of team support on the childcare demands – employee performance linkage.

The relationship between employee orientation, financial performance and leverage

2015 ◽  
Vol 11 (4) ◽  
pp. 716-733 ◽  
Author(s):  
Sabrina Wieland ◽  
Benjamin Scott Flavel
Keyword(s):  
Financial Performance ◽  
Empirical Investigation ◽  
Negative Relationship ◽  
Content Type ◽  
Employee Orientation ◽  
Managerial Opportunism ◽  
Proxy Measure ◽  
Anglo American ◽  
The Relationship ◽  
Sample Set

Purpose – The purpose of this study was to provide an empirical investigation into the relationship between employee orientation and both financial performance and leverage. Design/methodology/approach – The selected sample set consisted of German publicly listed and unlisted companies identified as a “Top Employer” by the Top Employers Institute for the period 2008-2010. The relationship between employee orientation and both financial performance and leverage was then examined for this sample set for the period 2007 and 2011, with the rating “Top Employer Germany” used as a proxy measure of employee orientation. Findings – The findings show a strong correlation with trade-off, traditional human relations and managerial opportunism theory. It is shown that investments in employee-orientated activities, such as career opportunities, and secondary benefits and work–life balance, lead to reductions in financial performance, which in turn leads to higher levels of employee orientation. Furthermore, no statistically significant relationship between the level of employee orientation and company leverage was found which is in disagreement with stakeholder capital structure theories which propose that there is a negative relationship, where highly leveraged companies tend to invest less in employee-orientated activities which in turn lead to higher levels of leverage. Originality/value – This is one of the first studies to provide an empirical investigation into the relationship between the level of employee orientation and both financial performance and corporate leverage. Most previous studies have focused on either financial performance or leverage. Furthermore, this is one of the first studies which has its geographical focus on Continental Europe. Most previous studies focused on the Anglo-American corporate environment.

Electronic monitoring and surveillance in the workplace

2015 ◽  
Vol 44 (1) ◽  
pp. 161-175 ◽  
Author(s):  
Peter Jeffrey Holland ◽  
Brian Cooper ◽  
Rob Hecker
Keyword(s):  
Electronic Monitoring ◽  
Negative Relationship ◽  
Employee Attitudes ◽  
Employment Relationship ◽  
Future Research ◽  
Probit Regression ◽  
Content Type ◽  
Trust In Management ◽  
Monitoring And Surveillance ◽  
The Relationship

Purpose – Electronic monitoring and surveillance (EMS) practices provide new challenges in the workplace. The purpose of this paper is to examine the relationship between EMS in the workplace on employees’ trust in management. Design/methodology/approach – This paper is based upon data from the 2012 Australian Electronic Workplace Survey of 500 randomly sampled employees. Controlling for a range of personal, job and workplace characteristics, the data were analysed using OLS and ordered probit regression. Findings – The regression analyses identified that EMS has, on average, a negative relationship with trust in management. The authors further differentiated the sample to examine the potential impact of EMS on trust between manual and non-manual employees. The study found the relationship between EMS and trust in management was only evident for manual workers. Research limitations/implications – Future research should investigate the extent to which employee attitudes, commitment and engagement are impacted, and the individual-level and organisational-level outcomes of EMS. Causal inferences are necessarily limited and the research does not address managers’ underlying motives. Although self-reported data on EMS reflect objectively measured characteristics of the organisation. Practical implications – EMS can have negative effects on the employment relationship through the loss of trust in management, especially for manual workers. Tangible effects may flow from this through withdrawal behaviour such as employee exit from the organisation. Social implications – The findings of this study provide evidence to add to the debate on the extent and impact of EMS in the workplace and its impact on employees, the employment relationship and productivity. Originality/value – Workplace surveillance is one of the most contentious issues facing employers, workers, unions, government and legal experts. However, little research has been undertaken on the effects of EMS on important job-related attitudes such as trust. The current paper remedies some of these deficits.

Intellectual property rights protection and technological innovation

2017 ◽  
Vol 25 (4) ◽  
pp. 350-368 ◽  
Author(s):  
Se Ho Cho ◽  
Hyun Gon Kim
Keyword(s):  
Intellectual Property ◽  
Technological Innovation ◽  
Negative Relationship ◽  
The United States ◽  
Intellectual Property Right ◽  
Future Research ◽  
Content Type ◽  
Intellectual Property Rights Protection ◽  
The Relationship ◽  
Ipr Protection

Purpose The purpose of this paper is to assess the role of firms’ internationalization on the relationship between intellectual property right (IPR) protection and their technological innovation. While recent studies provide a negative relationship between IPR protection and technological innovation, this paper argues that firm’s internationalization weaken the negative relationship. This research is a meaningful step to clarify the theoretical conflict and empirical ambiguity of the effect of IPR protection on technological innovations. Design/methodology/approach This paper empirically analyzes the theoretical arguments with 204 US firms, which registered their patents in the United States Patent and Trademark Office and have been listed in the Compustat database between 2007 and 2010. Findings The paper suggests that IPR protections brings more benefit to firms with high multinationality and are more export-oriented in terms of developing technological innovation, whereas the effects of international knowledge stock is unclear in the relationship between IPR protection and technological innovation. Research limitations/implications This study shows the effects of internationalization factors, which provide the benefits of cost efficiency and of more resource accessibility on the relationship between IPR protection regime and a firm’s technological innovation. The implication for policy makers and firm managers is that utilizing internationalization resources and capabilities is essential in developing their firms’ technological innovation under a strong IPR protection. Originality/value This paper enriches the literature of IPRs and offers the direction for future research on how a firm’s internationalization matters in its innovative activities under IPR protection.

The relationship between women’s presence in corporate positions and firm performance

2018 ◽  
Vol 10 (1) ◽  
pp. 83-100 ◽  
Author(s):  
Jorge Moreno-Gómez ◽  
Jonathan Calleja-Blanco
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Financial Performance ◽  
Family Firms ◽  
Developing Economies ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Content Type ◽  
Top Executive ◽  
The Relationship

Purpose The purpose of this paper is to analyze, in the Colombian developing context, the relationship between the presence of women in corporate positions and the financial performance of the company and to know if there are differences between family and non-family firms. Design/methodology/approach Building on the contingency theory of leadership, which emphasizes that leader’s personality and the situation in which that leader operates influences corporate decision-making, the authors use panel data models on a sample of 54 Colombian public businesses for the period 2008-2015 to test the proposed hypotheses on the relationship between women´s presence in corporate governance positions and financial performance, as well as the difference between family and non-family firms. Findings The results support that women´s presence in corporate governance positions is positively associated with firm performance. More concretely, the authors find a relationship between women at the top corporate governance structure (as part of the board of directors, top management team and chief executive officer) and firm profitability. Results also indicate that family business, as a type of organization, (negatively) moderates the positive relationship between female participation in top executive positions (board and top executive team) and firm performance. Research limitations/implications First, this study is limited to women in corporate positions in large companies listed on the Colombia Stock Exchange, and thus, generalizability for smaller entities may be limited. Second, data limitations do not allow us to investigate ways in which women’s presence in corporate governance structures contributes to improve firm goals. Practical implications The authors provide support to the hypothesis that positively relates women’s presence in corporate governance positions and firm performance for the case of Colombia. This serves as a guidance to Colombian regulators, corporate decision-makers and policy-makers to promote the inclusion of women in top hierarchical structures through either mandatory laws or recommendation. Originality/value Few studies have addressed the women´s presence in corporate governance positions and contribution to firm performance in developing economies. This study contributes to better understand how women impact performance in contexts where women are underrepresented in corporate governance structure and where there are no laws that pressure firms to appoint women in corporate governance positions.

Competitive advantage

2017 ◽  
Vol 8 (2) ◽  
pp. 221-234 ◽  
Author(s):  
Nixon Kamukama ◽  
Diana Susan Kyomuhangi ◽  
Richard Akisimire ◽  
Laura A. Orobia
Keyword(s):  
Financial Performance ◽  
Competitive Advantage ◽  
Commercial Banks ◽  
Bootstrap Method ◽  
Mediation Effect ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type ◽  
Managerial Competence ◽  
The Relationship

Purpose The purpose of this paper is to examine the mediating role of competitive advantage in the relationship between managerial competence and financial performance of commercial banks in Uganda. Design/methodology/approach A cross-sectional survey was employed using 22 fully licensed and operational commercial banks in Uganda. Data were analyzed using descriptive statistics, zero order correlation and hierarchical regression analyses. Further, the bootstrap method was used to test the mediation effect of competitive advantage. All the analyses were performed using SPSS v21. Findings The findings reinforce the important position of managerial competence on financial performance of commercial banks. First, managerial competence enhances firms’ competitive advantage. Second, managerial competence has an indirect effect on financial performance through competitive advantage. Overall, managerial competence and competitive advantage are strong predictors of financial performance of commercial banks. Research limitations/implications The study employed only a single research methodological approach, therefore future research could be undertaken using a mixed approach and triangulate to compare findings. Furthermore, the findings from the present study are cross-sectional, considering the limitations there in, a longitudinal approach should be explored. Practical implications Emphasis should be put on improving the knowledge and skills of managers so as to attain a competitive edge in the market and thus register increased profits. This will help practitioners make legitimate decisions and conclusions that can foster business growth. Originality/value A mediation effect of competitive advantage in the relationship between managerial competence and financial performance was tested; previous studies have tended to test the direct effects.

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